Infineon 2Q/01

Infineon Technologies AG , one of the world’s leading semiconductor manufacturers, announced results for its third quarter ended June 30, 2001, with revenues of Euro 1.28 billion, a decrease of 30 percent year-on-year and of 23 percent from the previous quarter of this fiscal year. Revenues declined in the Wireline and Wireless Communications, Security & Chip Card ICs and Memory Products businesses compared to the previous quarter. Weaker demand, lower product prices and order cancellations affected each of these segments, while Infineon’s Automotive and Industrial electronics business remained strong.

EBIT (earnings before interest and tax) decreased to a loss of Euro 598 million, down from a positive EBIT of Euro 366 million in the same quarter last year and down from a positive EBIT of Euro 10 million in the second quarter of this year. Infineon’s loss was caused by strong price erosion, especially for memory products, and costs of carrying currently unused capacity in most segments. The loss also reflects charges of Euro 209 million in connection with inventory write-downs in all segments other than Automotive & Industrial, Euro 30 million of acquisition related expenses, and Euro 21 million related to investments in a research and development venture. Without these charges and expenses, EBIT amounted to a loss of Euro 338 million.

Net income in the third quarter decreased to a loss of Euro 371 million, down Euro 637 million from the same quarter of the last fiscal year and down Euro 394 million from the previous quarter of this year. Loss per share for the third quarter was Euro 0.59 as compared with earnings per share of Euro 0.43 in the third quarter of the last fiscal year and earnings per share of Euro 0.04 in the second quarter of this year.

“Infineon has managed to grow faster than the market in the first half of the fiscal year with a 37 percent revenues growth in our non-memory businesses based on our strong position in system solutions despite an increasingly difficult market environment. However, market conditions significantly deteriorated in the third quarter and finally had a negative impact on Infineon’s overall business”, commented Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG. “Our balanced product portfolio did not help to ease the current weakness in the memory market any longer. This dynamic development and the magnitude of the current downturn, especially in communications, was not expected.”

Excluding the effect of the inventory write-downs Infineon achieved a gross margin of 16 percent. Including this effect Infineon reached a negative gross margin of 1 percent, down from 28 percent in the second quarter of this year and 41 percent in the third quarter of fiscal year 2000. SG&A expenses reached 17 percent of total revenues, up from 9 percent in the third quarter of fiscal year 2000 and up from 13 percent in the previous quarter of this year but were kept flat in absolute terms at Euro 212 million in the previous quarter and in the third quarter of fiscal year 2001. Higher SG&A expenses as a percentage of total revenues primarily reflects the reduced revenues in the quarter.

R&D expenditures in the third quarter totaled Euro 318 million. R&D expenditures were 25 percent of total revenues, an increase from 16 percent in the previous quarter and from 13 percent year-on-year due in part to the significant decline in revenues. In absolute terms, R&D expenditures were up 34 percent year-on-year and up 18 percent from the previous quarter of this year reflecting the continued investment in future technologies such as 3G mobile communications and 10- to 40-Gigabit optical networking.

Revenues outside Europe constituted 46 percent of total revenues, reflecting a slight decrease from 48 percent in the previous quarter. As of June 30, 2001, Infineon had more than 34,600 employees worldwide, with research and development staff accounting for more than 5,400 of this total.

First Nine Months Results

Revenues for the first nine months of fiscal year 2001 amounted to Euro 4.59 billion, down 6 percent from Euro 4.90 billion in the same period last year. EBIT for the first nine months of this year decreased to a loss of Euro 142 million, down from positive earnings of Euro 863 million for the same period last year. Net loss was Euro 68 million, down from a net income of Euro 545 million for the same period last year.

Business Group Performance

The Wireline Communications group’s revenues reached Euro 188 million in the third quarter of fiscal year 2001, up 7 percent from the same quarter last year but down 17 percent from the previous quarter of this year. Sequential revenue decline was mainly due to weaker demand in the Wide Area Networks and fiber optics business segments. The group’s EBIT decreased to a loss of Euro 26 million, down Euro 51 million from last year’s third quarter and down Euro 63 million from the previous quarter of this year. The EBIT decline was due mainly to reduced revenues and to inventory write-downs in the amount of Euro 16 million. The EBIT also includes a charge of Euro 13 million for in-process research and development associated with the completed acquisition of Ardent Technologies, Inc. and other acquisition related expenses of Euro 12 million.

Major developments in the Wireline Communications group in the third quarter included

— successful build-up of the long-range Ethernet market based on 10BaseS in Asia/Pacific and Japan with increasing design-win activities at major customers (e.g. PCCW, Singtel and NTT)

— introduction of the first OC-768 Silicon Germanium-based MUX/DEMUX chipset to take the lead in the 40Gbit/s SONET/SDH market

— continued demand for analog line cards for traditional telecom infrastructure development in emerging markets.

The Wireless Communications group’s third quarter revenues were Euro 176 million, down 41 percent compared with the third quarter of the last fiscal year and down 36 percent from the previous quarter of this year. The decrease in revenues was mainly due to the further deterioration of the mobile handset market with order cancellations and delays from major customers and rising inventories at customers. EBIT in the third quarter dropped to a loss of Euro 176 million, down Euro 240 million year-on-year and down Euro 180 million from the previous quarter, due to inventory write-downs of Euro 84 million, lower sales volumes and costs of carrying currently unused capacity.

Major developments in the Wireless Communications group in the third quarter included

— expanded leadership in short-range wireless applications with the introduction of four new BlueMoon(TM) Bluetooth solutions, including first samples of the world’s smallest single-chip Bluetooth solution, as well as the certification of Infineon’s BlueMoon I solution according to the new Bluetooth 1.1 specification

— reorganization of the Infineon Wireless Group, including the optimization of R&D activities to further improve focus on important target markets as well as new business segments.

In the Security & Chip Card ICs group, which is reported in Other Operating Segments, quarterly revenues reached Euro 144 million, an increase of 67 percent over the third quarter of the last fiscal year, but a decline of 24 percent over the previous quarter of this fiscal year. Revenues were affected by the continued downturn in the mobile phone market leading to significant order cancellations for security controllers used in SIM-cards. EBIT declined to a loss of Euro 35 million, down Euro 47 million from the third quarter of fiscal year 2000 and Euro 71 million from the previous quarter of this year. The loss reflects strong pricing pressure, decreased sales volume and the write-down of Euro 28 million in inventory.

Major developments for the Security & Chip Card ICs group in the third quarter included

— strengthened market position in Asia after leading credit card supplier’s decision to use Infineon crypto-controllers for banking applications

— establishment of the Ingentix joint venture with Saifun Semiconductors Ltd. to jointly develop and manufacture flash memory products based on Saifun’s patented NROM (Nitrided Read Only Memory) and Infineon’s leading know-how for smart card applications; Ingentix is initially focusing on MultiMediaCard(TM) storage products.

The Automotive & Industrial group’s quarterly revenues rose to Euro 288 million, up 24 percent from the third quarter of last year and slightly outperforming the record level of the previous quarter. Revenue growth was driven by the continued demand for Infineon’s automotive and industrial power solutions as well as power management and supply solutions despite a slightly weaker market environment. In particular, Infineon’s automotive business benefited from the strong market performance of leading German car manufacturers, especially in Europe and the United States. EBIT amounted to Euro 38 million, up Euro 20 million from the third quarter of last year and down Euro 2 million from the second quarter of this year.

Major developments in the Automotive & Industrial electronics segment in the third quarter included

— a major design win at Delphi Automotive Systems with Infineon’s AUDO engine management micro-controller

— receipt of the “Innovation of the Year Award 2001” from EDN magazine for Infineon’s AUDO 32-bit TriCore(TM) solution in the micro-controller category.

Revenues for the Memory Products group amounted to Euro 332 million, a decrease of 62 percent from the third quarter of last year and a decrease of 36 percent from the previous quarter of this year due to the continued weakening of the market for memory products and a further 30 percent drop in average selling prices. EBIT decreased to a loss of Euro 340 million, down Euro 625 million from the third quarter of fiscal year 2000 and down Euro 206 million from the previous quarter of this year. EBIT decline reflects the further sharp erosion in sales prices for DRAMs and inventory write-downs in the amount of Euro 81 million.

Major developments in the Memory Products segment for the third quarter included

— the validation by Intel of Infineon’s 288Mb RDRAM in 0.17 micron technology, currently the smallest 288 RDRAM on the world market

— successful pilot production of memory products in the next generation 0.14 micron technology, this next generation technology has also successfully been implemented on 300mm wafers

— based on design wins at strategic customers, development of new specialty memory products such as RLDRAM, Mobile-RAM and SGRAM for high-performance applications.

In the Other Operating Segments, which includes the Security & Chip Card ICs group, the Opto Joint Venture with Osram and other smaller business groups, quarterly revenues amounted to Euro 277 million, an increase of 20 percent from the third quarter of last year but a decrease of 20 percent compared with the previous quarter. EBIT amounted to a loss of Euro 68 million, down Euro 89 million from the third quarter of last year and down Euro 114 million from the previous quarter.

Strategic Highlights

Infineon maintained world market leadership for chip card ICs for the third consecutive year, with a 34 percent market share in calendar year 2000 according to data recently published by Gartner Dataquest. The company also dominated the market for secure memories for chip card applications with a 60 percent market share in units. According to Dataquest, Infineon also improved to fourth rank in the DRAM market with a 9,4 percent world wide market share in calendar year 2000.

With the acquisition of Catamaran Communications Inc., Infineon will further strengthen its leadership in fiber optical communications. Infineon will issue US$ 250 million in ordinary shares to the Catamaran shareholders in connection with the acquisition. Catamaran is an emerging leader in integrated circuits for the next generation 40 Gbps and fast growing 10 Gbps segments of the optical networking market. Combining Infineon’s communications expertise with that of Catamaran will give the company an important competitive advantage in the fast growing optical networking market as well as a leading position in the high speed line card segment at speeds of 40 Gbps and beyond.

In addition, Infineon will further streamline its wireline communications portfolio with the sale of its infrared components business to Vishay Intertechnology Inc. in a two stage transaction for approximately US$ 120 million. With this divestiture Infineon will have implemented the restructuring of its Wireline Communications business. Infineon intends to continue to expand its strategic core wireline communications activities in the field of local area networks (LAN), wide area networks (WAN) as well as in access solutions.

The acquisition of Catamaran and the sale of Infineon’s infrared components business are both subject to regulatory approvals and closing conditions and are expected to be finalized in the fourth quarter of fiscal year 2001.

Outlook for 2001

During the third quarter market conditions in the semiconductor industry further deteriorated. Most leading market analysts currently predict a negative growth rate of 20 to 30 percent for calendar year 2001. Visibility for the market development in the second half of calendar year 2001 remains low and there are no clear signs of a market recovery in the coming months. Due to the current negative market conditions Infineon expects to incur a net loss in the fourth quarter as well as a loss for its fiscal year 2001.

Market conditions for memory products remain difficult. Weak demand, especially in the PC market, has led to significantly higher inventory levels at memory producers. Even though Infineon’s inventory levels have stabilized towards the end of the quarter, the company expects a continued low price level for memory products during the next quarter.

The mobile handset market further deteriorated during the third quarter of fiscal year 2001. Although Infineon expects a reduction of the high inventory levels with regard to the Christmas business the company currently sees no clear signs of recovery in mobile phone demand. Infineon also expects that the current downturn of the semiconductor market, coupled with the slowdown of the global economy, especially in the United States, will continue to negatively affect Infineon’s Wireline Communications and Security & Chip Card IC businesses. However, Infineon expects its Automotive & Industrial components business to continue to benefit from a strong customer base as well as from the ongoing industry trend towards more advanced automotive electronics.

Infineon has already implemented a range of measures to mitigate the financial impact of the current downturn of the market, such as the reduction of capital expenditures by Euro 500 million to Euro 2.3 billion for the current fiscal year and by more than one billion Euro for fiscal year 2002, as well as implementing cost reduction programs including a hiring freeze.

Infineon intends to use the proceeds of approximately Euro 1.5 billion from its recent public offering to fund future capital expenditures and potential acquisitions as well as for working capital and other corporate purposes. “Our public offering, in combination with our reduction of planned capital expenditures for the current and next fiscal year and the cost cutting measures we have implemented, will enable us to continue to fund cutting edge research and development as well as to implement our aggressive productivity roadmap, especially our leadership in 300mm technology”, concluded Dr. Schumacher. “With these measures, we will be in a strong competitive position to benefit from any upturn in the semiconductor industry.”



Computer Sciences Corporation announced that GE Card Services has selected CSC’s ‘RPS-NT’ image-based remittance processing system. Under the agreement, CSC will implement the ‘RPS-NT’ system at all three GE Card Services payment processing operations centers and provide hardware and software maintenance. The contract is valued at $27 million if all options are exercised over a five-year period. ‘RPS-NT’ includes a centrally located image archive facility that will store and enable access to transaction data and images from all GE Card Services operations.


People’s 2Q/01

People’s Bank reported pre-tax income for its Credit Card Services division of approximately $59 million which included a $74 million pre-tax gain on the sale of its United Kingdom credit card portfolio. People’s card receivables continues to slide falling from $3.3 billion one year ago to $2,690,869,105 for 2Q/01. As of June 30, People’s had 1,241,193 active accounts and 2,823,925 cardholders, according to CardData. Yield on managed U.S. credit card receivables increased 135 basis points compared to 2Q00 and increased 49 basis points compared to 1Q01. Net charge-offs for 2Q/01 were 6.99% compared to 4.57% for 2Q00 and 5.62% for 1Q01. Delinquencies, as a percentage of quarter-end managed loans, equaled 4.11% compared to 2.85% for 2Q/00 and 3.96% for 1Q/01. For complete details on People’s current and past performance visit CardData ([][1]).

2Q/01 1Q/01 4Q/00 3Q/00 2Q/00
RECV: $2.7b $2.8b $3.1b $3.1b $3.3b
VOL: $1.3b $1.2b $1.6b $1.4 $1.5b
ACTIVES: 1.2m 1.3m 1.4m 1.4m 1.5m
b-billion m-million SOURCE: CardData (



Target VPA

VISA U.S.A. announced this morning that has become one of the first e-merchants to adopt ‘VISA Payer Authentication’. Beginning this fall, VISA cardholders can enroll for ‘VISA Payer Authentication’ (known to consumers as “Verified by Visa”) through participating banks, giving them the ability to make secure online purchases with their VISA card. Registered VISA cardholders will then be asked to enter a password when making purchases at Last month, Target unveiled its plans to become the first major American retailer to issue ‘smart VISA’ cards and also announced it will deploy smart card terminals in all of its stores. (CF Library 6/20/01)



NCR Corporation has won
contracts to install automated teller machines in El Metro, Madrid’s
subway system, with Banco Santander Central Hispano (BSCH), Caja Madrid and
Caja Duero. The three contracts total several million dollars and cover the
supply, installation and maintenance of 275 NCR Personas 70 ATMs. The ATMs are
being rolled-out to Madrid’s main stations this year.

Commenting on what will be the largest ATM installation for Madrid’s
subway, Bob Tramontano, NCR Financial Solutions Division vice president,
business development and strategic marketing, said, “In Europe we are seeing a
trend away from ATMs being placed solely in bank branches. The growing number
of ATMs in subway stations, airports and coffee shops is reflecting consumer
demand to bank at convenient locations where cash and other services are

The ATMs will be placed in the subway stations’ lobbies and ticket areas.
Beyond cash, additional services such as the payment of bills, passbook
updates and ticketing could be offered from the ATMs in the future. Caja
Madrid already offers such services through part of its ATM network.

Depending on the usage of the ATMs, the three financial institutions have
expressed an interest in expanding the number of their branded ATMs in
Madrid’s subway stations.

About Banco Santander Central Hispano (BSCH)

Banco Santander Central Hispano is a global financial group. It is the
largest financial institution in both Spain and Portugal, the second largest
in the euro zone and in the top fifteen world-wide by assets. The group is in
42 countries and has more than 35 million customers.

About Caja Madrid

The second largest savings bank in Iberia, Caja Madrid has assets of
$88 billion. Caja Madrid owns more than ten percent of Indra, one of Spain
and South America’s leading IT companies.

About Caja Duero

Caja Duero generated more than 1.5 billion pesetas in 2000. Caja Duero is
the largest provider of ATMs in central Spain.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leader in providing Relationship
Technology(TM) solutions to customers worldwide. NCR’s Relationship
Technology solutions include the Teradata(R) database and analytical
applications such as customer relationship management (CRM) and demand chain
management, store automation systems and automated teller machines (ATMs).
The company’s business solutions are built on the foundation of its long-
established industry knowledge and consulting expertise, value-adding
software, global customer support services, a complete line of consumable and
media products, and leading edge hardware technology. NCR employs 33,300 in
more than 100 countries, and is a component stock of the Standard & Poor’s 500


Fletcher on Unisys Board

The Board of Directors of Unisys Corporation elected Denise K. Fletcher, executive vice president and chief financial officer of MasterCard International, a director of the corporation.

Fletcher becomes the 11th member of the Unisys Board.

Fletcher, 52, has been CFO of the global payment services association since September 2000 and is responsible for finance, planning, and new markets and investments.

Previously, she was CFO of Bowne and Company, the world’s largest financial printer; managing director of Fletcher Associates, where she advised client CEOs and CFOs on maximizing market share and profitability; and corporate treasurer of The New York Times Company.

“We are very pleased to welcome Denise to our Board,” said Unisys Chairman and CEO Lawrence A. Weinbach. “She brings to us a wealth of knowledge in finance, and she will provide invaluable guidance on how we can profitably help our customers accelerate their business transformation in the New Economy.”

Fletcher graduated Phi Beta Kappa from Wellesley College with a Bachelor of Arts degree in sociology. She holds a Master in City Planning degree with a concentration in economics from Harvard University.

Fletcher serves on the Business Leadership Council of Wellesley College and the Board of Directors of the YWCA of the City of New York, and she is national treasurer of the Girl Scouts of the USA.

About Unisys

Unisys is an e-business solutions company whose 37,000 employees help customers in 100 countries apply information technology to seize opportunities and overcome challenges of the Internet economy. Unisys people integrate and deliver the solutions, services, platforms and network infrastructure required by business and government to transform their organizations for success in this new era.

The company offers a rich portfolio of Unisys e-@ction Solutions for e-business based on its expertise in vertical industry solutions, network services, outsourcing, systems integration and multivendor support, coupled with enterprise-class server and related technologies.

The primary vertical markets Unisys serves worldwide include financial services, transportation, communications, publishing and commercial sectors, as well as the public sector, including federal government customers. Unisys is headquartered in Blue Bell, Pennsylvania, in the Greater Philadelphia area.

For more information on the company, access the Unisys home page on the World Wide Web at [][1]. Investor information can be found at [][2].




Datakey Inc. announced that it received the largest award
to date for its cryptographic smart card systems, valued at nearly $3 million,
from the EXOCOM Group Inc., a Canadian-based value-added reseller (VAR).
Under a contract with the Canadian Department of National Defence, EXOCOM will
deploy 53,000 user seats and additional Datakey smart cards to support more
than 80,000 users. Shipments to EXOCOM will take place throughout the third
and fourth quarters, with full delivery completed by the end of 2001.

The DND/Canadian Forces protect Canadian interests at home and abroad,
help civil authorities protect and sustain national interests and assist in
national emergencies. To enable a secure and trusted environment for
accessing and communicating sensitive yet unclassified information over its
vast computer networks, the DND selected enhanced Internet security solutions
from Entrust, Inc. and Datakey smart card systems, which
feature 32K of storage space for Entrust digital identities including extended
key histories.

“Given the sensitive nature of information and data shared through DND
networks, Entrust’s enhanced Internet security solutions and Datakey smart
card systems are frequently chosen as the best way to authorize and safeguard
access to data and the enterprise network,” said Gary Miller, Vice President
of Strategy and Business Development, EXOCOM. “We partnered with Datakey
because its smart cards deliver a proven solution for using Entrust digital
IDs throughout the full range of PKI applications we are deploying for the
DND. And with FIPS 140-1 validation, Datakey smart card technology provides
the independently certified security required for DND operations.”

EXOCOM’s comprehensive Information Technology (IT) Security and Privacy
solutions are recognized globally and include a unique and proven expertise in
deploying Entrust’s enhanced Internet security and Datakey smart card systems.
EXOCOM has helped many leading global organizations, including Royal Mail and
Mackenzie Financial Corporation, design and deploy secure and trusted
information technology solutions.

“Our portfolio of enhanced Internet security capabilities provides the
DND/Canadian Forces with the mission-critical security, privacy and trust
necessary for all of their network transactions,” said Brian O’Higgins, chief
technology officer, Entrust, Inc. “Datakey smart cards add a second layer of
user authentication and cross-platform mobility for increased flexibility.”

“This major new business is particularly encouraging since it comes at a
time when we are seeing a general slowdown of IT spending as our customers
respond to the current economic climate,” said Carl Boecher, Datakey’s
president and CEO. “Although this award was received late in our second
fiscal quarter, it will not have a meaningful impact on second quarter’s
revenues. But it will have a very positive impact on our third and fourth
quarter results.”


The EXOCOM Group Inc. (EXOCOM), a wholly-owned subsidiary of Manitoba
Telecom Services Inc. (MTS), delivers advanced eBusiness services and
solutions that enable clients to strategically use information technology and
manage information for increased business advantage. EXOCOM was acquired in
January as part of the growth strategy for MTS’s eBusiness solutions
subsidiary, Qunara Inc. Since 1982, EXOCOM has consistently delivered high
value, high quality solutions to leading organizations in key verticals
including telecommunications, financial services, insurance, health care, high
technology and government. With more than 130 employees and offices in
Ottawa, Toronto, and Halifax, the company offers expertise across a broad
range of business lines, including business strategy and information
technology (IT) consulting, IT security and privacy consulting, application
development, technology integration and enterprise infrastructure solutions.
Its Web site is located at . Qunara’s Web site is
located at .

About Datakey, Inc.

Datakey, Inc. is a leading international provider of smart card solutions
for PKI. Headquartered in Minneapolis, Minn., the company offers a family of
smart card-based information security and digital signature products. Using
state-of-the-art cryptographic technology, these products fill growing market
needs for secure, smart card-based user authentication and data privacy for
business-to-business e-commerce. Datakey’s smart card-based information
security products play an integral role in any PKI system by providing
two-factor security — something that is owned (a smart card) and something
that is known (a password).

Shares of Datakey’s common stock are traded on Nasdaq under the symbol
DKEY. You can find more information on the Datakey Web site at



Baltimore Technologies announced that it is a key member of the consortium selected to upgrade the Australian Defence communications network through the multimillion dollar e-Defence project.

Baltimore Technologies was chosen as part of the CSC-led consortium, to provide secure communications and e-business solutions to the 90,000 Australian Defence personnel. Under this agreement, Baltimore will provide e-security services in a deal valued at over A$1 million, that is expected to be recognised over a seven month period from June to year end.

The aim of the e-Defence project is to provide a sophisticated and integrated infrastructure to protect critical operational communications. Every member of Defence will be given a digital certificate that has been generated using an accredited public key infrastructure (PKI). These digital certificates will enable Defence personnel to uniquely sign and encrypt their electronic correspondence, giving this e-correspondence the same assurance and legal status as a signed, paper-based letter.

The e-Defence communications system will be based on the commercial off-the-shelf products that are currently being used by Defence. Baltimore will provide the expertise to increase the security provided by their mail systems to a level appropriate for the communication of highly sensitive information.
When completed, e-Defence will be the largest such information security project in the Southern Hemisphere and will be compliant with the Australian Government’s Gatekeeper requirements.

Background on Department of Defence communications network

— The defence network is one of Australia’s largest, covering over 300 locations nationally and offshore

— The Department of Defence consists of 90,000 personnel

What is the e-Defence project?

— Sophisticated privacy and integrity infrastructure to protect
critical operational communications

— The project will provide encryption, electronic signature
capabilities, e-mail enhancements, desktop-to-desktop
interoperability with allies and a tactical interface to the
battlefield. Smart Cards will be introduced in later phases of
the project.

— Timeframe for completion is 24 months

— Largest such information security project in the Southern

What does the e-Defence project mean to Defence?

— Commanders will have a network that meets their needs in
executing military operations

— Purchasing decisions for things such as weapon systems, can be
handled by the network

— The e-Defence project will create approximately 40 high-tech
jobs within the capital and regional Australia over the next
two to three years.

Who is implementing this system for Defence?

— CSC has signed a $34 million contract with the Department of

— CSC is partnering with Baltimore Technologies, Compucat
Research, Communications Design and Management, and Total
Logistics Management to implement the e-Defence system

About Baltimore Technologies

Baltimore Technologies develops and markets security products and services to enable companies to develop trusted, secure systems for e-business, the Internet and mobile commerce. Its products include a wide range of Public Key Infrastructure (PKI) products and services, access and authorisation management solutions, wireless e-security, cryptographic toolkits, content security products, security applications and hardware cryptographic devices.
Baltimore’s global professional services organisation offers a wide variety of consulting, training and deployment support to its customers worldwide. Baltimore Technologies markets and sells its solutions worldwide directly and through the TrustedWorld partner program. Baltimore TrustedWorld includes many of the world’s leading technology companies and a wide variety of global, regional and local business alliance partners.

Baltimore Technologies plc is a public company with dual listings on NASDAQ (BALT) and the London Stock Exchange (BLM). For further information and press releases on Baltimore Technologies, please visit


Bandana Gift Card

Gift Check Solutions has been selected by Bandana’s Bar-B-Q to provide electronic gift card services to Bandana’s 11 restaurants located throughout Missouri and Illinois.

Gift Check Solutions will replace Bandana’s paper gift certificates with an electronic gift card program. Under terms of the contract, Gift Check Solutions will manage the design, ordering and processing of the gift cards for the restaurants.

“Gift certificate sales have always been an important part of our business,” said David Seitz, co-owner of Bandana’s Bar-B-Q. “We anticipate that by better marketing of our gift card program, our sales will increase even more. With our previous gift program, we would give customers change if they spent only $15 of their $20 gift certificate.

“With the gift cards, the remaining balance stays on the card and can entice customers to return to the restaurant a second or third time.”

Gift Check Solutions has developed customized gift cards for Bandana’s, featuring the restaurant’s logo and theme. The gift card program includes custom sorted reports containing useful information such as card activation date, activation amount, activation and redemption location, redemption amount, and card balance. In addition, customer service is available 24 hours a day, seven days a week.

“Gift cards allow Bandana’s to increase sales through unique marketing strategies,” continued Seitz. “We can get creative when displaying the gift cards around the restaurant, since they have no cash value until they are activated. Customers can also add more money to the card as the balance gets low.”

“We have found that our clients, as well as their customers, benefit from using our gift cards,” said John Bechard, president of Gift Check Solutions. “Our clients express their satisfaction with the time and labor saved, the additional marketing potential, and the card-usage reports they receive from our gift card programs.

“Our gift cards offer a modern and appealing image for our clients, while providing their customers with convenient cards that serve as a great gift for any occasion.”

About Gift Check Solutions

Based in Salt Lake City, Gift Check Solutions provides paper- and electronic-based gift products and services. The company manages the creation, processing, printing and fulfillment of gift certificates and gift cards. Paper gift certificates are encoded with a client’s bank account information and are processed like a check. Electronic gift cards utilize magnetic swipe card technology, allowing gift card transactions to be processed real-time via a secure network. Gift Check Solutions also offers hosted e-commerce services for online gift certificate ordering, and customized point-of-purchase materials to drive gift certificate sales throughout the year. For more information, visit [][1].




Oberthur Card Systems has formed
Oberthur Advise, a consulting division that will assist telecoms, financial
institutions, government agencies and transport operators develop strategic
plans for smart card program implementation. Oberthur Advise accesses
existing infrastructure, helps select cards and devices on through to
project coordination and training of personnel.

The consultants will develop customized packages that incorporate EMV
migration, UMTS migration, guidance on PKI and smart card personalization.

“Oberthur Advise has been created to provide sound advice, guidance and
project management to companies wanting to leverage the power of smart card
technology to benefit their business,” noted Martine Guignard, Director of
Oberthur Advise.

The Oberthur Advise team displays a combined expertise of smart card
experience drawn from a range of backgrounds both inside and outside
Oberthur Card Systems. For the past 15 years, Director of Oberthur Advise,
Martine Guignard, worked in the smart card industry and has been very active
in shaping smart card technology within industry bodies and trade

Oberthur Advise operates out of its Paris base, and will open up more
branches as needed to fulfill customer needs.

About Oberthur Card Systems

Oberthur Card Systems (Paris Stock Exchange – Code SICOVAM 12413), a global
leader and the innovator in the smart card industry, is shaping the future
by offering the ultimate in SIM, WAP, 3G (IMT-2000/UMTS), e-wallet
technologies & Internet-based card management services coupled with a firm
commitment to open standards.

Championing EMV migration, Oberthur is the world’s #1 supplier of MasterCard
and Visa cards, #1 in banking, e-commerce, m-commerce and pay-TV, Oberthur
is also the #1 in JavaTM and GSM technologies.

Oberthur Card Systems has an international reach ensured by 30 sales offices
and 20 manufacturing sites across the five continents. Oberthur Card Systems
had sales of 451.1 million Euros in 2000.


Providian 2Q/01

Smart VISA leader and sub-prime specialist, Providian Financial, reported Thursday that its revenue hit $1.76 billion in the second quarter, a 29% increase over 2Q/00. The issuer’s managed net interest income soared by 40% to $962.2 million thanks to sharply lower interest rates. As a result, 2Q/01 earnings were $232.4 million, compared to earnings of $187.6 million for second quarter 2000. During 2Q, Providian added 600,000 net new accounts and $2.1 billion to total managed credit card loans. Providian’s receivables are now growing at an annual rate of 39%. Providian reported 2Q/01 charge-offs of 10.29% versus 9.34% in the first quarter of 2001 and 7.42% one year ago. The 30+ day managed delinquency rate was 8.04% at quarter end, compared to 6.48% for 2Q/00. For complete current and historical data on Providian’s credit card portfolio visit CardData (

2Q/01 1Q/01 4Q/00 3Q/00 2Q/00
EOP RECV: $30.5b 28.4 27.1 24.1 21.8
ACCTS: 17.7m 17.1 16.3 15.0 13.9
CHG-OFFS 10.29% 9.34% 8.48% 7.61% 7.42%
DEL (30+dy) 8.04% 7.64% 7.52% 6.71% 6.48%

Source: CardData ([][1])